EL 25429 Jervois Project Annual Report for the reporting period 2 February 2017 to 1 February 2018

Abstract

EL 25429 'Jervois' is located in the Proterozoic terrain of the Arunta Inlier. The tenement covers the gossanous outcrop of the Jervois Mine and its extensions along strike. EL 25429 has a total area of approximately 110.9km2 (35 blocks). During the year, KGL Resources Limited (ASX:KGL) (KGL or the Company) continued to discover more high grade copper mineralisation at the 100% owned Jervois Copper Project. A concentrated drilling program at the Rockface prospect and deep drilling at the Reward prospect extended discoveries and increased known mineralisation, in advance of an updated JORC statement of resources. The Company continued with the 2017 - 2018 drilling program that was commenced at Rockface in the March quarter. The successful results continued to demonstrate the value of down hole electromagnetic (DHEM) surveying in locating prospective conductor zones and identifying drill targets. The drilling program was designed to investigate the high potential conductor zones on the eastern side of Rockface as indicated by DHEM surveying, and also to facilitate, with systematic infill drilling, a future update of the resources. Investigation of a DHEM conductor, by diamond drilling, discovered a significant extension of mineralisation at the Reward prospect. Twenty-five holes, for a total of 11,951.29 metres were completed on EL 25429. Down Hole Electromagnetic (DHEM) surveys were conducted.